Thursday, July 1, 2010

San Francisco Chronicle: Emerging "Top-Hat" Academia Conflicts-of-Interest?


On June 3, 2010, Merck announced that it had forged a major new cancer research initiative -- and that the University of California at San Francisco would be one of the "hubs" for that research effort. It turns out that, unlike many of her peers in academia, the Chancellor of UCSF's public medical school and hospital system doesn't hold her stocks in a blind trust -- to insulate her from charges that decisions she makes might be influenced by her personal investments.

She plainly has beneficial ownership of a very significant amount of Merck stock, per Nanette Asimov, in this morning's San Francisco Chronicle -- do go read it all, but here is a bit:

. . . .The question is more than academic because UCSF and other universities are increasingly forging research partnerships with private companies. For example, last month, the Merck pharmaceutical company announced it would sponsor cancer drug trials around the world, including at UCSF. [UCSF Chancellor] Desmond-Hellmann owns more than $1 million of stock in that drug company.

It's one of 10 medical or pharmaceutical companies in which the chancellor owns stocks collectively worth at least $6.1 million to $7.3 million, but potentially much more, according to the statement of economic interests she signed in August after joining UCSF.

"I am in full compliance with the rules and regulations that apply to employees of the state of California and the University of California," Desmond-Hellmann said in a written statement to The Chronicle. "As such, I disclose my economic interests as required and will disqualify myself from participating in decisions that may affect my personal economic interests."

Ethics experts say that is all the law requires.

"A conflict of interest doesn't occur until an official influences, participates in, or makes an official decision that impacts their economic interests," said Roman Porter, executive director of the state's Fair Political Practices Commission. . . .

To avoid such problems, politicians from President Obama to California Insurance Commissioner Steve Poizner have put their holdings in blind trusts. . . . "The honor of being the chancellor of UCSF comes with the small burden of rearranging your finances to avoid conflict -- for the sake of the institution and the public trust," he said. . . .

It is odd that someone with such substantial "related" holdings -- and such a high-profile office -- wouldn't already have a blind trust. [She made most of her money by leading efforts at Bristol-Myers, and later Genentech -- to bring oncology drugs like Taxol, Rituxan, Herceptin, Tarceva and Avastin to market. She is thus a connsumate insider-alumna of big pharma, on the science side.]

Will this be the next area of activism, related to reeling-in pharma's potential influence over the workings of academia -- from the the top of the house, down -- as opposed to at the individual researcher level, up? We'll see.

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